RBI has issued circular on the lines of Section 196(3) of the - TopicsExpress

RBI has issued circular on the lines of Section 196(3) of the Companies Act, 2013 and instructed all the Banks that the upper age limit for MD & CEO and other WTDs of banks in the private sector should be 70 years, i.e. beyond which nobody should continue in the post. Within the overall limit of 70 years, individual bank’s Boards are free to prescribe a lower retirement age for the WTDs, including the MD & CEO, as an internal policy. Section 196(3) also prescribe that ‘no company shall appoint or continue the employment of any person as Managing Director, Whole Time Director or Manager who is below the age of 21 years or has attained the age of 70 years.

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